Copper prices advanced on Monday, with the London contract hovering around the key level of $7,000 a ton, as Democrat Joe Biden’s victory in the US presidential election dented the US dollar.
The three-month copper contract on the London Metal Exchange rose 0.3 percent to $6,966 a ton, while the most-traded December copper contract on the Shanghai Futures Exchange closed up 0.7 percent to 51,840 yuan ($7,881.29) a ton.
The dollar hit a 10-week low as investors heralded President-elect Biden’s win by buying trade-exposed currencies on expectations that a calmer White House could boost world commerce and that monetary policy will remain easy.
A cheaper dollar made greenbackpriced metals more attractive to holders of other currencies.
“It’s risk-on sentiment because of the certainty of the results of the US presidential election. (London copper) will break $7,000 and head to around $7,150 and fall back here again around $7,000,” said a Singapore-based metal trader.
Also supporting sentiment was data showing China’s exports grew at the fastest pace in 19 months in October, while imports also rose, as the world’s top copper consumer continued to recover from its coronavirus-driven slump early this year.